Contact: Laine Williams, (202) 897-4757, [email protected]
Washington, DC, October 22, 2024 – The Financial Data and Technology Association of North America (“FDATA North America”), a trade association representing more than three dozen financial technology and open finance companies, today celebrated the release of the Consumer Financial Protection Bureau’s (“CFPB”) final rule implementing Section 1033 of the Dodd-Frank Act.
Steve Boms, Executive Director of FDATA North America, released the following statement:
“The CFPB’s final Section 1033 rule marks a pivotal moment for millions of consumers across the country, who, for the first time, have a legally binding right to access and share access to their financial data. We applaud the final rule, which puts consumers in control of their financial data, allowing them to select the financial provider that best meets their needs. Today’s final rule does more than fulfill a long-standing need—it redefines the future of financial services in the United States, setting the stage for a more competitive, transparent, affordable, and consumer-focused marketplace for generations to come.
We look forward to continuing to work with the CFPB and with stakeholders from throughout the financial services ecosystem to expand the framework the Bureau finalized today to include additional accounts over time, facilitating a true open finance system in the United States.”
Though highly supportive of the CFPB rulemaking, FDATA North America expressed disappointment that Electronic Benefit Transfer (“EBT”) data was excluded from the scope of data included under the final rule, and urged the CFPB to include EBT data in future iterative rules to address this gap and extend the benefits of open finance to lower-income individuals.
A number of FDATA North America member companies also provided statements in response to the CFPB’s final Section 1033 rulemaking:
Betterment provided the following statement:
“Betterment joins FDATA in applauding the CFPB for its final rule on Section 1033 of the Dodd-Frank Act, which secures Americans’ right to control their financial data. This rulemaking is an important step in expanding access to innovative and affordable financial services, including digital investment advice. We look forward to working with FDATA, the CFPB, and other stakeholders to implement and expand the rule to encompass investment and retirement accounts, which will help to more fully realize the promise of Section 1033.”
Brian Costello, Head of ByAllAccounts Data Aggregation Strategy & Governance, Morningstar Wealth, stated:
“Congratulations to the CFPB on the momentous milestone of publishing the final Personal Financial Data Rights Rule enacting Dodd-Frank 1033 Rule. U.S. consumers now have a legally-binding right to electronically share their own financial data with third-party financial services providers of their choice. ByAllAccounts looks forward to working with the Bureau to expand the covered accounts within the Rule to also include brokerage, retirement, and annuity accounts as outlined in our comment letter to the CFPB.”
Jason Rosen, Founder & CEO, Prism Data, stated:
“This is a transformational moment for financial services in the United States. By putting consumers in control of their personal financial data, the CFPB’s new rule will spur greater innovation and competition among financial providers and expand consumer access to safe financial products on better terms. And consumers aren’t the only winners: banks and lenders can now gain a significantly more comprehensive and accurate picture of their customers’ financial lives, unlocking opportunities to serve more people and better manage risk.”
John Pitts, Head of Policy, Plaid provided the following statement:
“Since day one, Plaid has sought to make it easy for consumers to securely access and share their financial data with the services that work best for them. Today’s announcement from the CFPB reaffirms that open banking in the U.S. benefits consumers, promotes a healthy financial services marketplace, and should be protected by law. The 1033 rule will usher in a new, more consumer-centric chapter of financial services in the U.S. and accelerate competition in payments, more inclusive access to credit, enable more advanced fraud fighting tools, and other innovations that benefit consumers. We look forward to this next era of open finance.”
Jane Barratt, Chief Advocacy Officer, MX, provided the following statement:
“For more than a decade, MX has been a leader in open finance and consumer-permissioned data sharing. We look forward to continuing to lead with privacy-first principles and ensuring our clients can meet these new compliance obligations and leverage consumer-permissioned data effectively and ethically.”
Alexandre Gonthier, Founder and CEO of Trustly, Inc., stated:
“Trustly, Inc. commends the CFPB on the release of its final rule for section 1033 of the Dodd-Frank Act, which helps solidify Open Banking by putting consumers in control of their financial data. However, the rule fails to match Director Chopra’s lofty rhetoric on encouraging competition in payments and supporting pay-by-bank.
We were hopeful the CFPB would reconsider its proposal to allow tokenized account numbers (TANs) to be used in place of the consumer’s ACH account and routing numbers and are concerned by the final rule’s stance. Our position has been clear from the beginning – we’ve seen TANs serve as a new tool for fraudsters rather than safeguarding consumer information as intended. Additionally, we are disappointed by the CFPB’s final rule regarding the reauthorization of data sharing by consumers every 12 months. Consumers want to eliminate the friction in the payment process, and the final rule misses the mark in this area.”
Mit Shah, Co-Founder & COO, Method Financial, stated:
Method Financial applauds the CPFB for delivering a rulemaking that codifies the promise of Open Banking. Consumer financial health has been put front and center, with consumers able to access and share their financial data in pursuit of the most competitive financial products. Method appreciates the CFPB’s efforts to ensure that all consumers are able to access the benefits of Open Banking and to provide a clear standard for all financial institutions and data aggregators that serve them.